|
Small Scale Sector Exemption Scheme
Notification No.
9 dated 2nd June 1998 (As amended by 18/98)
In exercise of
the powers conferred by sub-section (1) of section 5A of the Central Excise Act,
1944 (1 of 1944) and in supersession of the notification of the Government of
India in the Ministry of Finance (Department of Revenue) No. 38/97-Central
Excise, dated the 27th June, 1997, the Central Government, being
satisfied that it is necessary in the public interest so to do, hereby exempts
clearances, specified in column (2) of the Table below, (hereinafter referred to
as the said Table) for home consumption, of excisable goods of the description
specified in the Annexure appended to this notification (hereinafter referred to
as the specified goods), from so much of the duty of excise leviable thereon
which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of
1986), as is in excess of the amount calculated at the rate specified in the
corresponding entry in column (3) of the said Table:
|
S. No.
|
Clearances
|
Rate of duty
|
|
(1)
|
(2)
|
(3)
|
|
1.
|
First clearances upto an aggregate value not
exceeding fifty lakh rupees in the financial year 1998-99.
|
Sixty per cent of
normal rate of duty
|
|
2.
|
Clearances upto
an aggregate value not exceeding fifty lakh rupees immediately following the
clearances specified against S.No. 1 above during the financial year 1998-99.
|
Eighty per cent
of rate of duty
|
Note I: If any clearances for home consumption have been effected before
the 2nd day of June, 1998 under notification No. 16/97-CE dated 1st
April, 1997, whether at nil rate or otherwise, or under notification No.
38/97-CE dated 27th June, 1997, such clearances together with
clearances for home consumption, if any, effected on or after the 2nd
day of June, 1998 under notification No. 9/98-CE dated 2nd June, 1998
shall be taken into account for computing the limit of fifty lakh rupees, for
S.No. 1 above.
Illustrations regarding no.1 of Table:
Illustration I: A manufacturer
operating as on 1st day of June, 1998 under notification No. 38/97-CE
dated 27th June, 1997 makes clearances worth Rs. 40 lakhs at the
concessional rate of 60% of normal rate of duty, is entitled to additional
clearances at the same concessional rate upto an additional value of Rs. 10
lakhs during the remaining part of the financial year 1998-99.
Illustration II: A manufacturer who
was operating as on 1st April 1998 under notification No. 16/97-CE
dated 1st April 1997 makes clearances worth Rs. 30 lakhs at nil rate
of duty. Thereafter, he opted for
payment of duty under notification No. 38/97-CE dated 27th June, 1997
and cleared goods having a value of Rs. 5 lakhs at the concessional rate of 60%
of normal duty till 1st June, 1998.
He is entitled under this notification (i.e. 9/98-CE) to additional
clearances (at the concessional rate of 60% of normal rate of duty) upto a value
of Rs. 15 lakhs during the remaining part of the financial year 1998-99.
Illustration III: A manufacturer
avails, as from 1st April 1998, of exemption under notification
No.16/97-CE dated 1st April 1997.
He makes clearances worth Rs. 30 lakhs at nil rate of duty and Rs. 5
lakhs of clearances at the concessional rate of 3% ad valorem. Thereafter, he opts for payment of duty
under notification No. 38/97-CE and clears goods of a value of another Rs. 7
lakhs (at the concessional rate of 60% of normal duty) till 1st June
1998. He is entitled, under this
notification (9/98-CE) to additional clearances (at the concessional rate of 60%
of normal rate of duty) upto a value of Rs. 8 lakhs [50-{30+5+7}] during the
remaining part of the financial year 1998-99.
Illustration IV: A manufacturer
operating as on 1st April 1998 under notification no. 16/97-CE makes
clearances worth Rs. 30 lakhs at nil rate of duty till 1st June 1998. With the coming into effect of
notification No. 8/98-CE on 2nd June 1998, he is deemed to have
switched over to that notification. He
makes further clearances for home consumption after 2nd of June 1998,
having a value of Rs. 8 lakhs and thereafter he opts for payment of duty under
this notification (i.e. 9/98-CE). He
is entitled to additional clearances (at the concessional rate of 60% of normal
duty) upto a value of Rs.12 lakhs during the remaining part of the financial
year.
Note II: Further, if the aggregate of the aforesaid clearances exceeds Rs.
50 lakhs, then such of the aggregate amount, which is in excess of Rs.50 lakhs,
shall be taken into account for the purpose of S.No. 2.
Illustrations regarding no.2 of Table:
A manufacturer who avail of exemption under
notification No. 38/97-CE dated 27th June, 1997 made clearances worth
Rs.50 lakhs at the concessional rate of 60% of normal rate of duty and Rs.12
lakhs worth of clearances at the concessional rate of 80% of normal rate of
duty, upto 1st June, 1998. Such a manufacturer shall be entitled to additional
clearances upto a value of Rs.38 lakhs only (at the concessional rate of 80% of
normal rate of duty) in the remaining part of this financial year.
2. The
exemption contained in this notification shall apply only subject to the
following conditions, namely -
(i) a manufacturer who commences his first
clearances in the year 1998-99 on or after 2nd June, 1998 and intends
to avail the exemption under this notification shall exercise his option in
writing for availing the exemption under this notification before effecting the
first clearances and such option shall be effective from the date of exercise of
the option which shall not be withdrawn during the remaining part of the
financial year. A manufacturer who
was availing of exemption under notification No. 38/97-CE dated 27th
June, 1997 prior to 2nd June, 1998 is allowed to continue to avail of
exemption under this notification and no fresh option is required. The manufacturer shall not be permitted
to change this option in favour of notification No. 8/98-CE dated 2nd
June 1998 during the remaining part of the financial year 1998-99.
(ii) Where a manufacturer clears the specified goods from one
or more factories, the exemption in his case shall apply to the total value of
clearances mentioned against each of the serial numbers in the said Table, and
not separately for each factory;
(iii) Where the specified goods are cleared by one or more
manufacturers from a factory, the exemption shall apply to the total value of
clearances mentioned against each of the serial numbers in the said Table and
not separately for each manufacturer;
(iv) The aggregate value of clearances of all excisable
goods for home consumption by a manufacturer from one or more factories, or from
a factory by one or more manufacturers, has not exceeded rupees three hundred
lakhs in the preceding financial year.
3. For the purpose of determining the
aggregate value of clearances for home consumption, the following clearances
shall not be taken into account, namely:-
(a) clearances, which are exempt from the whole of the excise
duty leviable thereon (other than an exemption based on quantity or value of
clearances) under any other notification or on which no excise duty is payable
for any other reason;
(b) clearances bearing the brand name or trade name of
another person, which are ineligible for the grant of exemption under this
notification in terms of paragraph 4 below
(c) clearances of specified goods which
are used as inputs for further manufacture of any specified goods within the
factory of production of the specified goods, provided that clearances of
specified goods, which are used as inputs chargeable to nil rate of duty or
exempt from the whole of the duty of excise leviable thereon under any other
notification, shall not be deemed to be exempt.
(d) clearances of strips of plastics
used within the factory of production for weaving of fabrics or for manufacture
of sacks or bags made of polymers of ethylene or propylene.
4. The exemption contained in this
notification shall not apply to goods bearing a brand name or trade name,
whether registered or not, of another person, except in the following cases,
namely: -
(a) where specified goods, being in the nature of components
or parts of any machinery or equipment or appliances, are cleared for use as
original equipment in the manufacture of the said machinery or equipment or
appliances by following the procedure laid down in Chapter X of the Central
Excise Rules, 1944:
Provided that manufacturers, whose aggregate value of
clearances for home consumption of such specified goods for use as original
equipment does not exceed rupees fifty lakhs in the financial year 1998-99, as
calculated in the manner specified in paragraph 1 above, may submit a
declaration regarding such use instead of following the procedure laid down in
Chapter X of the said rules;
(b)
where the goods bear a brand name or trade name of -
(i) the Khadi and Village Industries Commission; or
(ii) a State Khadi and Village Industry Board; or
(iii) the National Small Industries Corporation; or
(iv) a State Small Industries Development Corporation; or
(v) a State Small Industries Corporation;
Explanation: For the purposes of this notification, -
(A) �brand name� or
�trade name� shall mean a brand name or trade name, whether registered or
not, that is to say a name or a mark, such as symbol, monogram, label, signature
or invented word or writing which is used in relation to such specified goods
for the purpose of indicating, or so as to indicate a connection in the course
of trade between such specified goods and some person using such name or mark
with or without any indication of the identity of that person;
(B) where specified goods
manufactured by a manufacturer bear a brand name or trade name, whether
registered or not, of another manufacturer or trader, such specified goods shall
not, merely by reason of that fact, be deemed to have been manufactured by such
other manufacturer or trader;
(C) �value� means,-
(i) in respect of specified
goods which have been notified under section 4A of the Central Excise Act, 1944
(1 of 1944), as determined in accordance with the provisions of that section
(ii) in respect of specified
goods other than those referred to in sub-clause (i) the value as determined in
accordance with the provisions of section 4 of the Central Excise Act, 1944 (1
of 1944), or the tariff value fixed under section 3 of the said Act;
(D) in the determination of
the value of clearances of Chinaware or Porcelainware or both, where a
manufacturer gets Chinaware or Porcelainware or both fired in a kiln belonging
to or maintained by a Pottery Development Centre run by the Central Government
or a State Government or by the Khadi and Village Industries Commission, the
value of the Chinaware or Porcelainware or both, belonging to the said
manufacturer and fired in such a kiln shall be taken into account;
(E) where the specified goods
are manufactured in a factory belonging to or maintained by the Central
Government or by a State Government, or by a State Industries Corporation, or by
a State Small Industries Corporation or by the Khadi and Village Industries
Commission, then the value of excisable goods cleared from such factory alone
shall be taken into account:
(F) �normal rate of duty�
means the duty of excise which is specified in the Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) read with any relevant notification (other
than this notification or a notification in which exemption is based on the
value or quantity of clearances) issued under sub-section (1) of section 5A of
the Central Excise Act, 1944 (1 of 1944).
(G) where the specified goods
are chargeable to nil rate of duty or are already exempt from the whole of the
duty of excise leviable thereon under any other notification, the clearances of
specified goods used as inputs, shall not be deemed to be exempt under clause
(c) of paragraph 3.
(H) clearances for home
consumption shall also include clearances for export to Bhutan or Nepal.
ANNEXURE
1. All goods specified in the Schedule to
the Central Excise Tariff Act, 1985 (5 of 1986), other than the following
namely,-
(i) all goods falling under heading No. 21.06 and sub-heading Nos.
2101.10 and 2101.20;
(ii) all goods falling under Chapter 24 of the
said Schedule (other than unbranded chewing tobacco and preparations containing
chewing tobacco, falling under Heading No.
24.04 of the said Schedule);
(iii)
all goods falling under heading No. 25.04;
(iv) sandalwood oil, all goods falling under
heading Nos. 33.04 and 33.05, and sub-heading Nos. 3307.10, 3307.20, 3307.31,
3307.39, 3307.50 and 3307.90;
(v)
all goods falling under heading No. 36.05;
(vi)
all goods falling under heading Nos. 37.01, 37.02 and sub-heading No.
3703.10;
(vii) strips of plastics intended for weaving of fabrics or
sacks, polyurethane foam and articles of polyurethane foam; falling under
Chapter 39;
(viii) all goods falling under heading No. 40.05 (except rubber
solution or vulcanising solution), and sub-heading No. 4006.10 and plates,
sheets and strips falling under heading No. 40.08, for resoling or repairing or
retreading rubber tyres;
(ix) all goods falling under Chapter 51 of the said
Schedule other than those falling under sub-heading Nos. 5105.30 and 5105.40 and
Heading Nos. 51.06, 51.07, 51.08, 51.09, 51.10 and 51.11 (except woven fabrics
of wool falling under heading Nos. 51.10 or 51.11) and under 51.12;
(x) all goods falling under Chapter 52 of the
said Schedule other than goods falling under Heading No. 52.04;
(xi) all goods falling under Chapter 53 of the said
Schedule except goods falling under Heading Nos. 53.01, 53.02, 53.04, 53.05,
53.08 (other than goods falling under sub-heading No. 5308.14), 53.11 (other
than woven fabrics of ramie);
(xii)
all goods falling under Chapter 54 of the said Schedule except goods
falling under Heading No. 54.01;
(xiii) all goods falling under Chapter 55 of the said Schedule except
goods falling under Heading Nos. 55.05, 55.08 and shoddy yarn manufactured from
used or new rags falling under heading No. 55.09 or 55.10;
(xiv) all goods falling under Chapter 56 of the said Schedule
except goods falling under Heading Nos. 56.01, 56.02, 56.03, 56.04, 56.05 (other
than of man made filaments), 56.07 (other than of jute), 56.08 and 56.09;
(xv)
all goods falling under Chapter 57 of the said Schedule;
(xvi) all goods falling under Chapter 58 of the said Schedule
except goods falling under Heading Nos. 58.03, 58.06, 58.07, 58.08, uncut grey
(unprocessed) woven weft pile fabrics of cotton manufactured from grey
unprocessed cotton yarn falling under sub-heading No. 5801.21, fabrics of cotton
or man-made fibres falling under sub-heading No. 5802.51, and unprocessed cotton
terry towelling fabrics falling under sub-heading No. 5802.21;
(xvii) all goods falling under Chapter 59 of the said Schedule except
goods falling under Heading Nos. 59.01, 59.05, 59.06, 59.08, 59.09, 59.10, 59.11
and textile fabrics coated or laminated with preparations of low-density
polyethylene;
(xviii) all goods falling under Chapter 60 of the said Schedule except goods
falling under sub-heading No. 6002.10 and fabrics of cotton man-made fibres not
subjected to any process falling under heading Nos. 60.01 or 60.02;
(xix) all
goods falling under Chapter 61 of the said Schedule;
(xx) all
goods falling under Chapter 62 of the said Schedule;
(xxi) Blankets
of wool falling under Chapter 63 of the said Schedule;
(xxii) all goods falling under heading Nos. 72.06, 72.07, 72.18, 72.24, cold
rolled stainless steel pattis/pattas falling under chapter 72; ingots and
billets of non alloy steel falling under sub-heading Nos. 7206.90 and 7207.90
and hot re-rolled products of non-alloy steel, falling under sub-heading Nos.
7211.11, 7211.19, 7211.30, 7211.52, 7211.59, 7211.60, 7211.92, 7211.99, 7213.90,
7214.90, 7215.90, 7216.10 and 7216.90, on which the duty of excise is paid under
section 3A of the Central Excise Act, 1944 (1 of 1944);
(xxiii) all goods falling under heading Nos./sub-heading Nos. 74.03
(excluding cast brass bars/rods of a length not exceeding 3 feet, and brass
billets weighting upto 5 Kilograms, falling under sub-heading No. 7403.21)
7407.11, 7407.12, 7408.11, 7408.21, 74.09, copper circles, whether or not
trimmed;
(xxiv) aluminium
circles, whether or not trimmed, falling under Chapter 76;
(xxv) all
goods falling under heading Nos. 85.21, 85.28;
(xxvi) refrigerating
and airconditioning appliances and machinery and parts and accessories thereof
falling under Chapters 84, 85 or 90
(xxvii) all goods falling under heading Nos. 87.01, 87.02, 87.03,
87.04, 87.05, 87.06 and 87.11 [other than powered cycles and powered cycle
rickshaw (powered cycle or powered rickshaw means a mechanically propelled cycle
or, as the case may be, mechanically propelled cycle rickshaw, which may also be
paddled, if any necessity arises for so doing];
(xxviii) all goods falling under heading Nos. 91.01 or
91.02;
(xxix) all
goods falling under sub-heading Nos. 9605.10.
|